Bond Market Update

Data Recon

• New home sales declined 0.6% month-over-month in June to a seasonally adjusted annual rate of 617,000 units (Briefing.com consensus 640,000) from an upwardly revised 621,000 (from 619,000) in May. On a year-over-year basis, new home sales were down 7.4%.
  • The key takeaway from the report is that new home sales activity remained soft in June, pressured by a lack of lower-priced homes and affordability pressures stemming from the persistence of high mortgage rates and higher selling prices.
• Yield Check:
  • 2-yr: -8 bps to 4.40%
  • 3-yr: -4 bps to 4.22%
  • 5-yr: -2 bps to 4.13%
  • 10-yr: UNCH at 4.24%
  • 30-yr: +3 bps to 4.50%